Outsourcing lifts shoe firm's profits by 16%

28 April 2004
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29 April 2004

Outsourcing to manufacturers in cheap labour markets has boosted profits for shoemaker Clarks.

The Somerset-based company recorded a 16 per cent increase in underlying profits on a rise of only 1 per cent rise in turnover. Clarks saw profits rise to £59.4 million in its home market.

A company spokesman said: "Manufacturing has moved to the Far East, India, Brazil and Romania, where labour costs are lower.

"It is one of the ways we have been able to stay competitive over the years, but it is not exclusive to us. Most shoe manufacturers do the same."

Last year, Clarks won a CIPS Supply Management Award for most improved purchasing operation, for efficiency savings on its annual £110 million non-footwear purchasing budget (see Features, 27 November 2003).

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